Why Crypto Firms Are Betting Big on Premier League Sponsorships in 2024

A Surge in Crypto Investment in English Football Amidst Regulatory Changes

The inflow of cryptocurrency investment into English football is intensifying, presenting clubs with much-needed financial support as regulations concerning gambling sponsorship tighten.

This revenue stream, traditionally significant for many clubs, is on the verge of decline, prompting teams to explore alternative funding avenues.

According to SportQuake, a sports sponsorship agency, crypto firms have invested nearly £130 million ($170 million) for the Premier League's 2024/25 season, a record figure that is anticipated to rise further with additional partnerships likely to be announced throughout the season.

Why Is Crypto Investment Resurging?

This uptick in sponsorship reflects a recovery phase for the market following a tumultuous period in 2022, characterised by the collapse of numerous digital-asset companies and significant declines in token values.

In light of the negative publicity associated with these events, cryptocurrency firms are eager to restore their reputations and regain consumer trust, particularly among retail investors who may have been deterred by the industry's scandals and volatility.

Daniel McDonagh, an associate at UK law firm Charles Russell Speechlys LLP, noted,

“There’s been a real shift toward limiting visible gambling sponsorship. There’s been an incentive in general for football teams to start seeking out new categories of sponsorship, because obviously that was quite a lucrative stream — the biggest single industry putting money into the sport.”

How Are Clubs Adapting to Gambling Restrictions?

The pressure to find new revenue streams has been intensified by stringent gambling regulations, including a "whistle-to-whistle" ban that prohibits gambling advertisements during live broadcasts of matches, enacted in 2019.

Furthermore, starting from mid-2026, clubs will be mandated to remove betting sponsors from the prime front-of-shirt positions on their kits.

As a result, clubs are increasingly looking towards the crypto sector to fill the financial void left by these impending restrictions.

Major deals are taking shape not only in England but across Europe, marking the first collaborations between various cryptocurrency firms and football leagues.

Notable partnerships for the 2024 season include Kraken, which sponsors Tottenham Hotspur, Atlético Madrid, and RB Leipzig.

Additionally, Crypto.com, which holds naming rights for prestigious events like the Miami Grand Prix and the Los Angeles arena formerly known as the Staples Center, announced its sponsorship of UEFA’s Champions League until 2027 in August.

OKX also extended its partnership with Manchester City, the reigning Premier League champions, demonstrating the growing presence of cryptocurrency in football sponsorship.

What Are the Risks and Regulations Involved?

As UK regulations surrounding cryptocurrencies have evolved, especially with marketing rules tightening in 2023, the focus of these sponsorship deals has shifted.

Currently, crypto firms prioritise broad brand visibility, utilising company logos on pitchside advertising, stadium posters, and team kits.

Notably, non-fungible tokens (NFTs) are exempt from UK promotion rules, allowing sponsors to offer engaging experiences such as competitions, exclusive behind-the-scenes access, and special content.

Despite the enthusiasm surrounding crypto partnerships, there remain considerable risks.

French NFT company Sorare, which entered a four-year deal with the Premier League in 2023 for a fantasy football game, is currently facing legal challenges for allegedly offering unlicensed gambling services.

The company has denied these allegations.

Are Football Clubs Taking Precautions?

Lawyers at Charles Russell Speechlys have indicated that crypto firms typically face a different set of partnership terms compared to traditional sponsors.

While established companies may negotiate long-term payment plans, newer entrants in the crypto space often need to provide upfront payments.

Furthermore, contracts frequently include clauses addressing reputational damage, allowing clubs to terminate agreements if a sponsor's standing declines.

To further safeguard against potential fallout, rights holders might request a letter of credit or a guarantee from a bank or parent company to secure the partnership.

While some clubs are still engaging with the gambling industry, with teams like Bournemouth, Crystal Palace, and Aston Villa securing new front-of-shirt deals with betting companies, the trend is shifting.

As these prime sponsorship spaces become available, crypto companies are poised to take advantage of the situation, potentially upgrading their existing arrangements.

Why Are Crypto Firms Choosing Football?

Historically, blockchain companies have gravitated toward higher-profile sports like Formula One (F1), where the opportunity to connect with wealthy individuals is more pronounced.

OKX partners with the McLaren F1 motor racing team.

However, the financial turmoil within the crypto industry over the past two years has prompted many firms to reconsider their strategies.

As these firms search for new avenues to promote their brands, the more accessible price points in football are becoming increasingly attractive.

Arkham Intelligence, a blockchain data analytics firm, recently signed a two-season deal with Turkish side Galatasaray for €1.8 million ($2 million) per season.

The deal places Arkham's logo on players' shirt sleeves.

CEO Miguel Morel explained,

“Where you’re dipping your toes into a market, football provides really great value in terms of the number of people who are extremely interested in the sport versus the amount of money.”

If successful, Arkham may consider investing further for a more prominent sponsorship position, illustrating the potential for crypto to establish a lasting presence in football.